Kathmandu (KMD)

Kathmandu
’s shares jumped sharply after C
EO Peter Halkett
, outlined plans at the company’s annual meeting to grow the business 30 per cent over the next three years through product innovation. The stock jumped more than 7.5 per cent on the news. He said the retail environment market remained uncertain and volatile, but Kathmandu would continue to focus on opening stores and adding more products. “Given no further deterioration in trading conditions, management and the board believe the business will continue to grow profitability in the year ahead," he said. Despite Kathmandu’s 9¢ jump in value to $1.28, Deutsche Bank placed a “hold" recommendation on it. Deutsche Bank analyst Raymond Gonzalez said its risk-reward was still not favourable. “While the first quarter trading update has given us more confidence in our forecasts, it is not enough to get us excited about a PER rerating story," he said.